Moody's cuts Sovcomflot

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating of Sovcomflot JSC to Ba1 from Baa3.

Concurrently, Moody's downgraded the company's issuer rating to Ba2 from Ba1 and the senior unsecured rating assigned to the $800 million eurobond issued by SCF Capital Ltd., which is a 100% indirect subsidiary of Sovcomflot, to Ba2 with a loss given default assessment of 6 from Ba1.

The outlook on all ratings is stable.

Moody's said the downgrade was triggered by its decision to change the company's baseline credit assessment to 13, mapping to Ba3, from 12, mapping to Ba2.

This decision followed the company's weaker-than-anticipated performance for the third quarter 2011 and the further subsequent deterioration in the broader sector's trading conditions since then, Moody's said.

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